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Is A Tax On Electricity (kWh) Consumed The Best Way to Supplement the Fuel Tax for Electric Vehicles?

EV Adoption

As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fuel taxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fuel tax.

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kWh Billing and New EV Charging Tax Policies: What You Need to Know

Blink Charging

These broad definitions are written to include all utilities but may inavertently include businesses that install EV charging stations for public use. However, EV drivers do not pay these taxes, and the growth of EVs is expected to lead to a decrease in tax revenue. kWh tax begins on July 1, 2025.

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